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Country suffers huge loss due to corrupt revenue collection system – JVP

Published

4 years ago

2021/07/26

Sahan Weerasooriya

Govt. urged to act on COPA report or face the consequences

By Shamindra Ferdinando

JVP leader Anura Kumara Dissanayake says the country is paying a huge price for the failure of successive governments to streamline tax collection process. The JVPer insists the tax collection process has been somewhat debilitated by rampant corruption and irregularities.

Dissanayake was responding to The Island query regarding massive losses in tax revenue highlighted by the current Committee on Public Accounts (COPA) in its first report to the parliament tabled on July 20th.

Such large scale fraudulent activities couldn’t have been carried out without the complicity of those in authority whoever was in power, the Colombo District lawmaker. The JVP contested the 2020 general election on the National People’s Power (NPP) ticket. The JVP parliamentary group consists of three, including one National List MP, Dr. Harini Amarasuriya.

MP Dissanayake alleged that in addition to the failure on the part of the government to collect due taxes and mismanagement of finances, absolutely unjustifiable decision to sharply reduce taxes soon after 2019 presidential election dealt a deadly blow to national economy.

The government owed an explanation why the Treasury was denied as much as Rs 650 bn in taxes at the onset of incumbent administration, MP Dissanayake said. The country could have coped up with the continuing crisis caused by raging Covid-19 epidemic much better if the tax structure in place at the time of the 2019 presidential election was retained, he said.

Responding to another query, the JVP leader emphasized that a serious examination of losses caused by the ruling SLPP’s reduction of taxes amounting to Rs 650 bn should be made. Parliamentary watchdog committees, namely the Committee on Public Enterprises (COPE), Committee on Public Accounts (COPA) and Committee on Public Finance (COPF) should take up the matter. The latest COPA reported exposed an extremely embarrassing state of affairs in key institutions responsible for the tax collection process, the MP said.

Pointing out that the Customs and the Motor Traffic Departments coming under the purview of the Finance and Transport ministries, respectively, had been particularly named by COPA, MP Dissanayake said that massive scam in sugar imports soon after the last parliamentary poll proved how decisions were made at the expense of the national economy.

Referring to COPF proceedings that dealt with the sugar tax scam, MP Dissanayake said that COPF Chairperson Anura Priyadarshana Yapa (SLPP/Kurunegala District) is on record as having said on January 5, 2021 consumers hadn’t benefited at all by Finance Ministry decision to reduce Rs 50 tax on imported kilo of sugar to paltry 25 cents. MP Yapa was referring to a gazette No 2197/12 issued by the Finance Ministry on Oct 13, 2020, the JVPer said. MP Dissanayake said that the sugar tax scam was as bad as the Treasury bond scams perpetrated by the previous administration. Although some government members expressed concerns over the sugar tax scam at the COPF, the government conveniently turned a blind eye to what the JVPer called a brazen fraud perpetrated on the hapless population.

Have you ever heard of such a drastic reduction of taxes in respect of sugar on any other occasion, MP Dissanayake asked, alleging the incumbent administration as a result of sheer crookedness caused unbearable loss of revenue. The JVP leader said that sugar tax scam couldn’t be suppressed though the government acted as if nothing had happened.

Successive governments obviously facilitated fraudulent practices in the tax collection system. The incumbent government was no exception, the MP said, underscoring how government revenue gradually dropped over the years as robber barons took over the national economy. “We are now in such a desperate situation those in authority seem to be clueless where the national economy is heading,” MP Dissanayake said.

Urging the government to go flat out to recover long overdue taxes, the JVP leader said that in spite of big talk the government was in a bind, struggling to face the daunting financial challenge. Asked to explain the situation, lawmaker Dissanayake said that the raging Covid-19 epidemic deprived Sri Lanka of two major sources of income, namely funds remitted by those who had been employed overseas and the disruption of tourism. The JVPer pointed out that tourism suffered in the wake of 2019 Easter Sunday carnage followed by Covid-19 as both ruined the sector. Acknowledging that the country had managed to sustain the garment trade and other exports, lawmaker Dissanayake said that the economy was in a critical phase. The government seemed to be either incapable of comprehending the rapid deterioration or it could sustain the economy until the ongoing vaccination drive achieved desired objective.

MP Dissanayake said that Sri Lanka could no longer afford to delay taking action to restructure revenue collection mechanism. The SLPP should be prepared to face the consequences unless continuing corrupt practices were brought to an end. The deterioration of national economy caused by Covid-19 against the backdrop of waste, corruption, irregularities and negligence could overwhelm the country soon unless remedial measures were taken.

The JVPer said that the parliamentary system of governance should take command of the situation regardless of the political power being with the SLPP. The deepening national economic crisis couldn’t be addressed by playing politics with the issue at hand as commanding overwhelming majority in parliament wouldn’t be relevant.

The JVP leader said that there was no need to comment on proposed tax amnesty to crooks as former minister Dew Gunasekera, one-time General Secretary of the Community party, in an interview with The Island explained futility of such an exercise.

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58,454 International aircraft movements in Sri Lanka in first 11months of 2025 – Ministry of Ports and Civil Aviation

Published

6 hours ago

2025/12/31

Priyan

According to figures released by the Ministry of Ports and Civil Aviation there have been 58,454 international aircraft movements in the first 11 months of 2025 in Sri Lanka. [An aircraft movement refers to the count of take offs and landings at an airport]

The figures also confirm that tourist arrivals via air stands at 2.1 million.

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Highest revenue in 93-year history of Inland Revenue Department collected in 2025

Published

9 hours ago

2025/12/31

Priyan

The Inland Revenue Department has succeeded in collecting Rs. 2,203 billion in revenue in 2025, the highest amount recorded in its 93-year history. This represents a surplus of Rs. 33 billion over the revenue target for the year and a 15 per cent increase compared with the revenue collected in the previous year, stated Commissioner-General of Inland Revenue Ms Rukdevi Fernando.

She made these remarks at a discussion held on Tuesday (30) morning at the Department’s auditorium under the patronage of President Anura Kumara Dissanayake.

Marking the first occasion in the 93-year history of the Inland Revenue Department that a President has visited the Department, the President attended a meeting with the staff to review the progress achieved in 2025 and the new plans for 2026.

The President expressed his appreciation to all officers and staff of the Inland Revenue Department for surpassing the revenue expected by the Government and urged everyone to continue working towards a common objective in order to realise the economic transformation required for the country.

Emphasising that no individual is entitled to the privilege of evading taxes, the President stated that the era in which a tax culture prevailed based on personal or political affiliations has come to an end. He further stressed that the law will be enforced without hesitation, irrespective of status, against those who attempt to evade taxes.

The President also pointed out that tax collection is neither repression nor coercion but a legitimate right of the State, adding that necessary changes will be made to laws, regulations, designations and staffing in order to secure this contribution.

He further emphasised that the Government’s objective is to ensure that the benefits of these economic achievements flow to the people of the country. The Government is focusing on improving essential public services to enhance the quality of life, undertaking a new transformation of the transport system and providing adequate allocations for the development of the education and health sectors.

The President also highlighted the need for a targeted programme to properly collect the taxes due to the Government by addressing issues such as improving tax literacy, simplifying the tax system and filling staff shortages.

Ms Rukdevi Fernando stated that the professional competence and dedication of the Department’s officers were the key factors behind this success.

She further noted that a revenue target of Rs. 2,401 billion has been set for 2026 and that the Department expects to achieve this through programmes aimed at enhancing tax compliance and broadening the tax base.

In addition, she said that the Department plans to expand third-party data sharing, strengthen investigations into domestic and overseas assets, take over the RAMIS system, reinforce risk-based auditing, introduce e-invoicing, adopt modern technology for tax administration and enhance tax ethics in 2026.

Minister of Labour and Deputy Minister of Finance and Planning Dr Anil Jayantha Fernando, Deputy Minister of Economic Development Nishantha Jayaweera, Secretary to the President Dr Nandika Sanath Kumanayake, Commissioner-General of Inland Revenue Ms Rukdevi Fernando and senior officials and staff of the Department were present at the occasion.

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Sri Lanka Customs exceeds revenue targets to enters 2026 with a surplus of Rs. 300 billion – Director General

Published

18 hours ago

2025/12/31

Priyan

The year 2025 has been recorded as the highest revenue-earning year in the history of Sri Lanka Customs, stated Director General of Sri Lanka Customs, Mr. S.P. Arukgoda, noting that the Department had surpassed its expected revenue target of Rs. 2,115 billion, enabling it to enter 2026 with an additional surplus of approximately Rs. 300 billion.

The Director General made these remarks at a discussion held on Tuesday (30) morning at the Sri Lanka Customs Auditorium, chaired by President Anura Kumara Dissanayake.

The President visited the Sri Lanka Customs Department this to review the performance achieved in 2025 and to scrutinize the new plans proposed for 2026. During the visit, the President engaged in extensive discussions with the Director General, Directors and senior officials of the Department.

Commending the vital role played by Sri Lanka Customs in generating much-needed state revenue and contributing to economic and social stability, the President expressed his appreciation to the entire Customs employees for their commitment and service.

Emphasizing that Sri Lanka Customs is one of the country’s key revenue-generating institutions, the President highlighted the importance of maintaining operations in an efficient, transparent and accountable manner. The President also called upon all officers to work collectively, with renewed plans and strategies, to lead the country towards economic success in 2026.

The President further stressed that the economic collapse in 2022 was largely due to the government’s inability at the time to generate sufficient rupee revenue and secure adequate foreign exchange. He pointed out that the government has successfully restored economic stability by achieving revenue targets, a capability that has also been vital in addressing recent disaster situations.

A comprehensive discussion was also held on the overall performance and progress of Sri Lanka Customs in 2025, as well as the new strategic plans for 2026, with several new ideas and proposals being presented.

Sri Lanka Customs currently operates under four main pillars, revenue collection, trade facilitation, social protection and institutional development. The President inquired into the progress achieved under each of these areas.

It was revealed that the Internal Affairs Unit, established to prevent corruption and promote an ethical institutional culture, is functioning effectively.

The President also sought updates on measures taken to address long-standing allegations related to congestion, delays and corruption in Customs operations, as well as on plans to modernize cargo inspection systems.

The discussion further covered Sri Lanka Customs’ digitalization programme planned for 2026, along with issues related to recruitment, promotions, training and salaries and allowances of the staff.

Highlighting the strategic importance of airports in preventing attempts to create instability within the country, the President underscored the necessity for Sri Lanka Customs to operate with a comprehensive awareness of its duty to uphold the stability of the State, while also being ready to face upcoming challenges.

The discussion was attended by Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayanta Fernando, Deputy Minister of Economic Development, Nishantha Jayaweera, Secretary to the President, Dr. Nandika Sanath Kumanayake, Deputy Secretary to the Treasury, A.N.Hapugala, Director General of Sri Lanka Customs, S.P.Arukgoda, members of the Board of Directors and senior officials of the Department.